Government Support for Business - Business, Innovation and Skills Contents


Appendix


Scheme name Funding received from Government (with time period covered) End date (if applicable) UK coverage Primary objective Target audience Outcome being measured
Business Growth Service

(has integrated GrowthAccelerator, Manufacturing Advisory Service, IP Audits and Designing Demand)

From May 2012 to April 2015 the budget for Growth Accelerator was £191m; from January 2012 to April 2015 the budget for MAS was £59.3m; from April 2012 to January 2015 the IPO (trading fund) budget for IP Audits was £1.5m; and from January 2012 to April 2015 the budget for Designing Demand was £3,9m. Additional funding of £160m for the Business Growth Service has been committed from April 2015 to March 2017. Contracts expire at end March 2017 England (although IP Audits and Designing Demand continue to be delivered in the Devolved Administrations) The service makes it easier for businesses with the right level of ambition, capability and capacity to improve and grow Businesses with the right level of ambition, capability and capacity to improve and grow ·  Between £1.6bn and £2.6bn GVA (Growth Value Added) generated

·  38000 - 56500 jobs generated

·  High levels of customer and stakeholder satisfaction compared to predecessor services maintained or improved

·  Efficiency savings of 12% p/a implemented

Advice

Exports
Scheme name Funding received from Government (with time period covered) End date (if applicable) UK coverage Primary objective Target audience Outcome being measured
UKTI Support for Exports

(Funding FY 2013/2014 £m)

Tradeshow Access Programme 23.6 N/A UK-wideSupport attendance at tradeshows AllAs part of its role in contributing to the UK's ambitions on export growth UKTI proposes to deliver its contribution through the following targets:

1)  To assist 50,000 businesses a year by end FY 2014/15;

2)  To help generate business wins of £20bn this year, year, £25bn in 2015-16, £32bn 2016-17, £39bn in 2017-18, £45bn in 2018-19 and rising to £50bn in 2019-20;

3)  to ensure 80 per cent of UKTI customers report positively on the quality of UKTI services; and

4)  to ensure 70 per cent of UKTI customers report significant business benefit

Passport to Export 2.1N/A England (equivalent service also offered by Devolved's) Build exporting capability First-time exporters
High Value Opportunities 8.7N/A UK-wideProviding access to world-class business opportunities All
Overseas Business Networks Initiative 4.7N/A UK-widePractical business-to-business support provided through the British Chambers of Commerce and its partner organisations All
Provision of International Trade Advisors 23.6N/A England (equivalent service also offered by Devolved's) Individual experts to advise businesses wishing to export All
Trade Promotion 19.3N/A UK-wideGeneral trade facilitation services All
Sector-specific Activities 17.3N/A UK-wideSpecific sector-focussed activity to take advantage of UK expertise All
Defence and Security Events 2.0N/A UK-widePromotion of UK Defence and Security Expertise All
UK Export Finance
Insurance·  Export insurance

·  Bond insurance

None. UKEF charges premium to cover expected loss and admin costs; claims paid from accumulated reserves NoneSupport can be provided in connection with supplies by any persons carrying on business in the UK of goods or services to persons carrying on business outside the UK. To fill gaps in the private credit insurance market for the provision of insurance (commercial and political risk) against not being paid under an export contract or against the unfair calling of contract bonds Any exporter but typically SMEs and MSBs i) Number of exporters supported

ii) Value of support provided by UKEF measured by maximum liability

iii) Export contract value supported for products aimed at smaller exporters

Bank guarantee: trade finance products ·  Bond support

·  Export working capital

·  Letter of credit guarantee

None (can be up to 2yrs horizons of risk) To facilitate the provision of letters of credit, contract bonds and working capital facilities by banks, thereby freeing up cash flow for performance of export contracts
Bank guarantee: loan products ·  Buyer and Supplier credit facilities

·  Lines of credit

·  Export refinancing facility (ERF)

None (loans can be from 2-18yrs horizon of risk) To facilitate the provision by banks of medium and long-term loans to overseas buyers to finance the purchase of UK exports. The ERF is an optional add-on to the buyer credit facility to secure availability of long-term finance for loans in excess of c.£50m Any exporter but typically larger companies; extensive supply chain benefits for smaller companies
Other support ·  Direct lending facility Up to £3bn - loans to buyers repayable at fixed interest rates; premium charged to cover expected loss and admin costs None (loans can be from 2-18yrs horizon of risk) The provision of fixed rate loans to overseas buyers to finance the purchase of capital goods/services from UK exporters, where such loans are not readily available from the private sector.

Finance
Scheme nameFunding received from Government (with time period covered) End date (if applicable) UK coverage Primary objective Target audience Outcome being measured
British Business Bank £3.9 billion of funding across all the programmes administered by the British Business Bank plc - across a number of years, which differs from programme to programme and covers past investments made plus headroom for future commitments

 

In 2013/14, the British Business Bank facilitated £1.5 billion of lending and investment, including public and private sector funding.

 

For every £ 1 of public funding, the bank attracts £2 to £3 of private sector funding.

 

British Business Bank programmes are measured by the finance facilitated in the market, operating by different mechanism including investments and guarantees.

N/AUK-wide To change the structure of business finance markets for smaller businesses, so these markets work more effectively and dynamically. SMEs (EU definition) and mid-cap businesses. The British Business Bank's success will be measured against 4 strategic KPIs:

 

1.  Total finance facilitated (public plus private sector)
Target: £10bn by 2017.18

2.  Diversity of supply of finance
Target: >50% through non-major banks

3.  Better provision of information to smaller businesses of finance options
Target: increased average awareness of finance options through SME survey.

4.  Managing taxpayers' resources efficiently
Target: to earn greater than Government medium term cost of capital over next 5 years.

 

British Business Bank programmes are subject to a rigorous evaluation process, comparing performance against KPIs and assessing VfM.

Green Investment Bank £3.8 billion of funding allocated to GIB for period to March 2016. N/AUK-wide GIB's role is to make commercial investments in green infrastructure projects across a range of sectors. It must achieve both strong commercial returns, demonstrating to the wider market that financing green projects can be a profitable business and deliver substantive green impact in accordance with specified green purposes.
Infrastructure projects seeking project finance. GIB also seeks to work in partnership with other finance providers (investment banks, fund managers and pension funds) to encourage additional private investment in green sectors. The Green Investment Bank's success is measured against a number of strategic KPIs: committing capital, achieving financial returns; profitability; mobilising additional capital; innovation; green leadership; and high corporate governance standards.

Local Growth
Scheme nameFunding received from Government (with time period covered) End date (if applicable) UK coverage Primary objective Target audienceOutcome being measured
Local Enterprise Partnerships £500k per year, per LEP from FY 13-14, £250k of which must be matched locally. First allocation of core funding during FY 12-13 totalled £125k per LEP. Government funding confirmed at current level until March 2016. England onlyTo contribute towards the core administrative costs of Local Enterprise Partnerships. This includes drafting their Strategic Economic Plans; the implementation of those plans; and monitoring and evaluation of the success of these plans Local Enterprise Partnerships (i.e. not aimed directly at businesses) Monitoring and evaluation plans are being put in place by each LEP, drawing on the standards in the national assurance framework, published on 12 December 2014. This a single assurance framework covering all government funding flowing through LEPs, to ensure they have robust value for money processes in place. It sets out what government expects LEPs to cover in their local assurance frameworks. These plans will enable LEPs to review the success of the interventions in the Growth Deals agreed with Government in summer 2014; and all subsequent Growth Deals.
Growth HubsGrowth hubs are locally led and as such receive funding from a range of sources, including private sector match, EU and HEFCE funding.

Government is providing £14m to LEPs for growth hubs in 2015-16 through the Growth Deal process; and 15 Wave 2 Cities are also receiving £6.4m Government funding in 2014-15 to establish growth hubs, from a £32m Regional Growth Fund programme managed by Lancaster University which also includes local business support.

Government funding confirmed until March 2016 England To ensure the establishment of a national network of growth hubs which provide a single point of access in each area to business support (local, national, public and private), and are built on strong partnerships which represent both local and national interests. Government is working with LEPs to ensure that the new Business Growth Service is fully aligned with growth hub delivery; and that growth hubs simplify the local business support landscape. All businesses (some growth hubs will provide enhanced services to high growth businesses, start-ups and priority sectors - working alongside national programmes and specialist organisations) Growth hubs will be evaluated against a consistent set of criteria covering: number and type of businesses supported, jobs created/saved, impact of individual local schemes, type of support provided, number of businesses acting on advice, businesses that are unsuccessful, customer satisfaction, and match funding secured.
Regional Growth Fund £3.2 billion. Existing RGF money will be paid out by 31 March 2017, with the job and investment outcomes being achieved up to the mid-2020s in line with agreed delivery plans. EnglandThe RGF aims to:

a.  Stimulate enterprise by providing support for projects and programmes with significant potential for economic growth, leveraging significant private sector investment and creating additional sustainable private sector employment; and

b.  Support in particular those areas and communities that are currently dependent on the public sector to make the transition to sustainable private sector-led growth and prosperity.

Grants of £1 million or more either directly to businesses, or to local or national intermediaries who support smaller investments by companies including SMEs. Private Sector jobs created or safeguarded and private sector investment leveraged.

Other sources of support
Scheme nameFunding received from Government (with time period covered) End date (if applicable) UK coverage Primary objective Target audienceOutcome being measured
Knowledge Transfer Partnerships £16m for 2014/15 N/AUK-wide Supports collaborative projects between businesses and universities undertaken by high calibre, recently qualified people ("associates"). All size of companies and all sectors. One of a range of programmes delivered by Innovate UK to stimulate and accelerate technology development and innovation in the areas which offer the greatest potential for boosting UK growth and productivity. Impact on participants will be measured.

An evaluation of the impact of on participant businesses was published in 2010. It found that for every £1 invested, businesses grew by around £5. To complement this report, an evaluation of the impact on participating higher education institutions and associates will report in March 2015.

Innovation Vouchers £3m for 2014/15 N/AUK-wide Helps businesses engage with the knowledge base and other forms of innovation advice to help develop new ideas and potential new commercial products. SMEs onlyOne of a range of programmes delivered by Innovate UK to stimulate and accelerate technology development and innovation in the areas which offer the greatest potential for boosting UK growth and productivity. Impact on participant businesses will be measured

One of a range of programmes delivered by Innovate UK to stimulate and accelerate technology development and innovation in the areas which offer the greatest potential for boosting UK growth and productivity. Impact on participant businesses will be measured.

The programme was designed to allow a randomised control trial to be used in assessing impact. The trial will launch next month and is expected to run for 12-18 months. It will inform not only the impact of the programme but also include analysis as to its fit in the wider innovation landscape.

Smart Grants £50m for 2014/15N/A UK-wideHelps businesses engage in R&D projects from which successful new products, processes and services could emerge.
SMEs only.One of a range of programmes delivered by Innovate UK to stimulate and accelerate technology development and innovation in the areas which offer the greatest potential for boosting UK growth and productivity. Impact on participant businesses will be measured.

Programme evaluated in 2009, but this covered the period when it was delivered by the RDAs. A new evaluation is underway and will report in 2015.



 
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Prepared 24 February 2015